The Nikkei average continued to fall sharply, closing below its 5-day moving average at the session low. The RSI declined, and nearby upside and downside levels have become a focus for the market.
The Nikkei average fell sharply for a second consecutive session. After opening lower and trading weakly, losses widened further, followed by an additional decline toward the close, with the index finishing at its low.
The 9-day RSI fell from 75.4% to 64.8%, viewed as a sign that the market's overheated conditions had eased.
The index fell below its 5-day moving average of around ¥69,603, prompting views that the reversal from the previous rapid advance was emerging.
Potential upside targets include ¥70,000, ¥71,000, the 1 July high of ¥71,962 and the 22 June high of ¥72,831. Potential downside targets include the conversion line at ¥67,749, the 75-day moving average at ¥66,765, the base line at ¥66,762 and the 25-day moving average at ¥66,115.